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Corporate Actions

A mandatory event does not require any investment decision from you, it is simply for your information. An example of a mandatory event would be a spin-off, where part of a company is spun-off to create a new company. If you have shares in the original
company, you will receive shares of the new company whilst retaining your original investment.

A voluntary event invites you to take part in an offer, but you may also decline to take part, in which case the default option will apply. Usually the default option for a voluntary event is to ‘take no action’. A tender offer is an example
of a voluntary event, where a third party wants to buy a portion of equity in your invested company, you will have the option to tender all or part of your investment. The event could eventually become a mandatory takeover where the third party attempts
to buy the entire share capital leaving you without the choice to tender or not.

You may refer to our glossary for further information on particular corporate action event types.

You should await contact from us. You will receive a secure mail through your Online Banking for any corporate actions that require your attention.

You may be required to make a decision for certain corporate actions. If this is the case then we will indicate which options are available. Your instruction must be delivered by return secure mail. We will also confirm the date by which your response must be received on our corporate action notification.

You investment is safe kept in our nominee account, this allows us to give you the lowest execution fees under our scalable business model.
However this means we have certain restrictions on the corporate action types we can offer.

Below are some corporate actions which are currently not offered:

Dividend reinvestments/dividend options on international markets. Where possible we will offer this option on the local Maltese market.

Odd lot offers, typical in the United States market, e.g. mini tenders.

Non official offers, or offers that are not supervised or regulated by an official entity.

French loyalty bonus offers.

Company meetings, proxy voting and consent offers.

Unregulated/unprotected corporate actions offered by third parties will also not be offered.

You can provide your instruction by sending us a return secure mail through your Online Banking. Instructions must be very clear and not be subject to interpretation, clearly stating the option number you are opting for.

The company's registrar will set a deadline for security holder responses to a corporate action, we must ensure that all the instructions of our clients reach the registrar by this deadline. Therefore our deadline will always be before the company registrar's deadline to give us time to process and forward on client instructions.

If you wish to alter an instruction you have sent us please contact us on (+356) 2557 4400 or send a replacement secure mail and we will do our best to accommodate your request. If your election has already been acted upon, and forwarded to the company's registrar, this may not be possible.

The company's registrar will often set a default election option for security holders to be used when no reply is received. We will tend to use the same default option however there may be some occasions when we will set a different default option. We will always advise the default option on our corporate action notifications.

In certain scenarios your investment will be blocked from market trading upon receipt of your submitted corporate action election. An example of this scenario would be a tender offer or a company repurchase offer: if you submit an election to sell your shares under the offer then it is necessary to block your holding from market trading.

This will vary, but generally will not be until the company has sent out the official documentation to shareholders. We will not contact clients as a result of press releases or market speculation. We also validate and second source the corporate action before distributing the information to you.

Your investment is safe kept in our nominee account, this allows us to give you the lowest execution fees under our scalable business model. However this means we cannot offer the ability to submit votes or to attend company meetings.

Any new shares or rights resulting from a corporate action will be automatically credited to your Investment Account on the date specified in the corporate action notification. However due to market or operational constraints there may be a delay of 1 or 2 days.

Cash entitlements resulting from corporate actions will be paid straight to your Investment Cash Account, in the same currency of denomination of the security. Should you not have an Investment Cash Account in the currency of denomination of the security, a new Investment Cash Account will be automatically opened to allow processing of the entitlement.

If you received an entitlement of bonus shares in relation to your investment in a Maltese equity and you wish to request a tax certificate, you can call us on (+356) 2557 4400 or send us a secure mail through your Online Banking.

We do not provide cash dividend/coupon tax certificates however, your statement is sufficient for submitting your local and foreign withholding tax obligations to the Malta Inland Revenue Department.

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Disclaimer

The materials contained in this web site are provided for general information purposes only and are not intended to provide legal or other professional advice nor do they commit MeDirect Bank (Malta) plc to any obligation whatsoever. MeDirect Bank (Malta) plc accepts no responsibility for any direct, indirect or consequential loss or damage which may arise from reliance on information contained in this site. Users are advised to seek confirmation of statements made herein before acting upon them; specialist advice should also be sought on specific issues.